bmi management conference may 2008 lynn terhune pod&usr administrator/corporate

BMI Management Conference

May 2008 Lynn Terhune

POD&USR Administrator/Corporate

Wiley’sPOD/USR Programs

&Global Digital

Initiatives

Background of Wiley’s Demand Program

Background of Wiley’s Demand Program

Currently 7,330 Wiley titles available in the US and UK

thru our US POD and UK USR Programs.

Distinction of Terms

USR = Inventoried & Returnable (UK & US)

POD = Not Inventoried & Not

Returnable (US only)

US POD Program History

’97-98 POD vendor with distribution backing – LSI/Ingram

March 1998 – Pilot Program started with 9 Wiley titles

June 2003 Wiley launches “true” POD drop ship thru EDI processing with 20 titles

July 2007 added our 2nd POD vendor – BNB

March 2008 launched 75 titles with Amazon/Booksurge

Global Digital Print Program Mission

Provide global persistent availability of all Wiley print product to all our

customers.

Why POD?A Print-on-Demand Program offers a

virtual database/library/warehouse of titles available to customers on an as needed basis.

Receive an order; fill it easily, economically and efficiently.

Customer Benefit

Content kept available and in print

No more out of stock situations

Product supplied in a timely manner

Benefits on the Publisher’s side

No lost revenue from out-of-print or back-order cancellation

Not having to tell an author the work is going out-of-print

No minimum quantity reprints Keep space requirements down Reduce obsolescence Improve customer service Additional sales revenue Sustain US ultra-short run revenue Improved title visibility and sales uplift thru

exposure from distribution channel Improve cash flow GREEN advantage

Additional Benefits for a Global Publishing Company

Time to customer / market reduced

Capture sales that would otherwise back ordered

Reduction in shipping costs

Functions reduced on the Manufacturing side

No Po’s to cut

No vendors to follow-up with on specific orders

No Bound Book dates to watch

No inventory to monitor

Why POD / USR?

Still not convinced???

Title Sales Uplift Example

Pub’d Feb 2003

1st printing of 2,000

+900 written-off & destroyed

POD Dec 2005

Sales uplift of 267 units for past 2 FY’s

Another Sales Uplift Example

- 1st Printing of 2300- 132 units write-off &

destroyed- POD Sept 06- Last 2 FY’s sold 700 units- More sales units in

FY08 in POD than in FY06 as a regularly inventoried item

- OP April 1st, 2008 due to a new edition

Other Examples:

• A $7800 valued 19 volume STMS set able to be completed for the Singapore location to fill to a customer before our FY closed.

Other Examples:

• Research done thru our Operations Group has shown that the service level for the titles in the US POD Program are close to and in some cases better than our own DC’s.

Why POD / USR?

Still not convinced???

US August Growth Comparison

Aug ’04 5,584 units

US August Growth Comparison

Aug ’04 5,584 units

Aug ’05 20,139 units

US August Growth Comparison

Aug ’04 5,584 units

Aug ’05 20,139 unitsAug ’06 32,589 units

US August Growth Comparison

Aug ’04 5,584 units

Aug ’05 20,139 unitsAug ’06 32,589 unitsAug ’07 51,875 units

FY US POD Unit Growth

UnitsFY04 26,679

FY US POD Unit Growth

UnitsFY04 26,679FY05 88,794

FY US POD Unit Growth

UnitsFY04 26,679FY05 88,794FY06 228,530

FY US POD Unit Growth

UnitsFY04 26,679FY05 88,794FY06 228,530 FY07 342,107

FY US POD Unit Growth

UnitsFY04 26,679FY05 88,794FY06 228,530FY07 342,107 FY08TD (US) 421,640

FY POD/USR Unit Growth

UnitsFY04 26,679FY05 88,794FY06 228,530FY07 342,107FY08TD (US) 421,640

Global FY08TD 492,209

Think about it!

525,000+

units delivered in one year to Wiley’s customers around the world in a quantity of 1

or 21 or 101 or 1001whenever or wherever

they need it!

Now that’s

a powerful inventory

management tool!

Wiley’s Systems

• How do we achieve delivering 525,000+ to our customers in a one-off environment?

Overall Systems/Workflow to accommodate US POD

Initial title review Title set up within our Book Product

Management system (costing, GM, approval, materials tracking, metadata feeds…)

Electronic ordering thru our distribution system

Electronic shipment notification feed to trigger invoice to customer & feed our inventory accounting system

Sales Reporting Electronic Invoicing

Basic Title CriteriaSalesUnit costMaterials availability (files preferable)Manufacturing specifications within:

Page count rangeTrim sizeOne color textMinimal halftones, screens, tints if

scanning

BPM (US)Handles title set up for demand

candidatesView and adjust GM on one screenApprove title & release title

metadataTrack title progress / Materials sentView exceptions by titleView confirmation that title is live

at vendor by title

Example of BPM Work w/Candidates

screen

Example of BPM GM screen

US COREOrders split off if coded w/PPC of

DP and transmit to one of our POD partners

POA receivedBooks printed & drop shipped to

our customersASN triggers invoice to customer

& populates IA w/ estimated units & $’s

Vendor receives order and generates a POA

Data routes to the print engines at the vendor

BooksPrint and Bind

ASN triggers customer invoice

ASN feeds back to Wiley for customer invoice & IAS

POD Daily Transmission Summary

• Date Orders Lines Units• 8/14/07 168 911 2843 • 8/13/07 186 934 4536 • 8/10/07 188 303 2019 • 8/09/07 157 219 819 • 8/08/07 121 192 1135 • 8/07/07 157 1224 6629 • 8/06/07 137 198 1466 • 8/03/07 166 242 1179 • 8/02/07 160 309 1254 • 8/01/07 152 270 959

Areas for Digital Print Growth

1st Prints Reprint Stop-Gaps HE Supplements Journals Custom Publishing Out-of-Print (POD Zzzz’s / POD Zombies) All product - Higher run length reprints 4 color Test Market runs Sets Convention orders Distributed printing in Asia, Australia & Canada

QUESTIONS?

THANK YOU FOR YOUR ATTENTION

AND FOR THEINVITATION TO THE BMI CONFERENCE!